The global SaaS market is set to reach 14.5 billion by the end of this year and with 11.89 broadband users in India today SaaS is transforming the way businesses function. Thus, it isn’t surprising that Zoho has forayed into India. It aims to focus is on providing cost effective solutions for small and medium businesses (SMBs) on the go.
According to a survey released by Zinnov Management Consulting, titled “Indian SMB ICT adoption insights” – small and midsize businesses (SMBs) in the country will grow at a compound annual growth rate (CAGR) of 15 percent by 2015, contributing US$15 billion or over one-third of India’s overall IT spend. It also noted that India is home to around 50 million SMBs, of which 10 million are technology-ready. This addressable market opportunity will increase to 11 million by 2015, it added. IT adoption in SMB segment is growing at 15 per cent and expected to reach USD 15 billion by 2015.
Large Enterprises and Individual users across segments will also be able to utilize its capabilities by using its plethora of services in CRM, Sites, Docs suite and the Zoho Mail suite.
“We are excited to enter the burgeoning Indian SMB market and play a proactive role in helping companies “Work online”. We hope to provide effective solutions across segments so that companies can concentrate on their core competence and leave their IT needs to us.”
– Raju Vegesna, Chief Evangelist, Zoho
In India Zoho faces stiff competition from Salesforce, Microsoft, and Google (though it’s more end-consumer focussed) who have been there for long and have a strong legacy. The difference Zoho brings is that though they also have a pay-per-use model, they have freemium model – all its 28 products have a free basic version. At present its Indian market share is very small (5-6 per cent) when compared to its competitors but they plan to grow it to 10-15 per cent within 3-4 years.